Toyota Motor Corp. (NYSE: TM) slashed its earnings forecast again Monday, the second time in a few months. The Japanese carmaker is now projecting that it would report its first ever operating loss of 150 billion yen ($1.66 billion) for the fiscal year as global demand has declined, especially in the U.S., while the yen has surged. TM shares declined over 3% in premarket trade. TM traded 5% lower by midday trading.

American International Group, Inc. (NYSE: AIG) said Monday it sold its Hartford Steam Boiler (HSB) unit to Germany's Munich Re for $742 million, well below the $1.2 billion AIG paid to acquire HSB in 2000. HSB was one of AIG's most prized businesses. Munich Re will assume $76 million of outstanding capital securities. AIG shares jumped over 5.5% on the news in premarket trade. AIG shares were 4.3% higher by midday.

General Motors Corp. (NYSE: GM) and Chrysler were approved $13.4 billion in bailout funds on Friday from the Bush Administration and another $3.29 billion from the Canadian and Ontario governments for their Canadian subsidiaries. Now, a hard part would be talks with the United Auto Workers union, which are supposed to start in January. Now doubt, they will ask for some tough concessions so that they could present cost cuts and qualify for a second round of loans in February. GM shares declined over 7% in premarket trade. GM shares tanked nearly 17% by midday trading.

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